Call for OFT to probe foreign currency costs

A CONSUMER watchdog has issued a super-complaint to fair trade officers about the amount holidaymakers are paying for their foreign currency.
By The Newsroom
Published 20th Sep 2011, 23:59 BST

Consumer Focus wants the Office of Fair Trading (OFT) to investigate what it believes is complex charging and poor information for travellers.

The watchdog said charges for using debit or credit cards overseas were unnecessarily complex and confusing. It added that phrases such as “0 per cent commision” and “competitive exchange rates” were misleading. It estimates that charges to customers for exchanging money are around £1 billion per year.

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Consumer Focus added that it was unclear how many of these charges were warranted and how many were excessive.

Consumer Focus chief executive Mike O’Connor said: “We face a confusing array of often hidden charges every time we buy currency. Converting £500 into euros can cost from under £10 to over £30 depending on where you switch your money.

“We are calling on the OFT to investigate and work with the industry to send these dubious and complex charges packing.”